You are here » Home » Companies » Company Overview » Innovative Tyres & Tubes Ltd

Innovative Tyres & Tubes Ltd.

BSE: 535015 Sector: Auto
NSE: INNOVATIVE ISIN Code: INE070Y01015
BSE 05:30 | 01 Jan Innovative Tyres & Tubes Ltd
NSE 00:00 | 18 Jul 37.70 2.50
(7.10%)
OPEN

37.50

HIGH

37.70

LOW

35.55

OPEN
PREVIOUS CLOSE
VOLUME
52-Week high 0.00
52-Week low 0.00
P/E
Mkt Cap.(Rs cr) 0
Buy Price
Buy Qty
Sell Price
Sell Qty
OPEN
CLOSE
VOLUME
52-Week high 0.00
52-Week low 0.00
P/E
Mkt Cap.(Rs cr) 0
Buy Price
Buy Qty
Sell Price
Sell Qty

Innovative Tyres & Tubes Ltd. (INNOVATIVE) - Auditors Report

Company auditors report

To the Members of

Innovative Tyres & Tubes Limited

Report On the Financial Statement

We have audited the accompanying financial statements of Innovative Tyres &Tubes Limited ("the Company") which comprise the Balance Sheet as at 31stMarch2017 and the Statement of Profit and Loss for the year then ended and a summary ofsignificant accounting policies and other explanatory information.

Management’s Responsibility for the Financial Statements:

The Company’s Board of Directors is responsible for the matters in section 134(5)of the Companies Act 2013 ( the Act ) with respect to the preparation of these financialstatements that give a true and fair view of the financial position and financialperformance of the Company in accordance with the accounting principles generally acceptedin India including the Accounting Standards specified under section 133 of the Act readwith Rule 7 of the Companies ( Accounts) Rules2014.This responsibility includes themaintenance of adequate accounting records in accordance with the provision of the Act forsafeguarding of the assets of the company and for preventing and detecting the frauds andother irregularities selection and application of appropriate accounting policies making judgments and estimates that are reasonable and prudent and design implementationand maintenance of internal finance control that were operating effectively for ensuringthe accuracy and completeness of the accounting records relevant to the preparation andpresentation of the financial statements that give a true and fair view and are free frommaterial misstatement whether due to fraud or error.

Auditor’s Responsibility:

Our responsibility is to express an opinion on these financial statements based on ouraudit. We have taken into account the provisions of the Act the accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and the Rules made there under.

We conducted our audit in accordance with the Standards on Auditing specified underSection 143(10) of the Act. Those Standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedures selected depend on theauditor’s judgment including the assessment of the risks of material misstatement ofthe financial statements whether due to fraud or error. In making those risk assessmentsthe auditor considers internal financial control relevant to the Company’spreparation of the financial statements that give true and fair view in order to designaudit procedures that are appropriate in the circumstances. An audit also includesevaluating the appropriateness of accounting policies used and the reasonableness of theaccounting estimates made by Company’s Directors as well as evaluating the overallpresentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the financial statements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by the Actin the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India:

a) in the case of the Balance Sheet of the state of affairs of the Company as at March312017;

b) in the case of the Statement of Profit and Loss Account of the profit for the yearended on that date.

Report on Other Legal and Regulatory Requirements:

As required by the Companies (Auditor’s Report) Order 2016 issued by the CentralGovernment of India in terms of sub-section (11) of section 143 of the Act (the"Order") and on the basis of such checks of the books and records of theCompany as we considered appropriate and according to the information and explanationgiven to us we give in the Annexure I a statement on the matters specified in paragraphs3 and 4 of the Order.

As required by Section 143(3) of the Act we report that:

a. We have sought and obtained all the information and explanations which to the bestof our knowledge and belief were necessary for the purposes of our audit;

b. In our opinion proper books of account as required by law have been kept by theCompany so far as appears from our examination of those books;

c. The Balance Sheet and Statement of Profit and Loss dealt with by this Report are inagreement with the books of account;

d. In our opinion the aforesaid financial statements comply with the AccountingStandards specified under Section 133 of the Act read with the Rule 7 of the Companies(Accounts) Rules 2014 (as amended);

e. On the basis of written representations received from the directors as on March 312017 and taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2017 from being appointed as a director in terms of section 164(2) of theAct.

f. With respect to adequacy of internal financial controls over financial reporting ofthe Company and the operating effectiveness of such controls refer to our separate reportin Annexure II.

g. With respect to other matters to be included in the Auditor’s Report inaccordance with Rule 11 of the Companies (Audit & Auditors) Rules 2014 (as amended)in our opinion and to the best of our information and according to the explanations givento us

i. The Company does not have any pending litigations which would impact its financialposition.

ii. The company did not have any long term contracts including derivative contracts forwhich there were any material foreseeable losses.

iii. There were no amounts required to be transferred to the Investor education andprotection fund.

iv. The company has provided requisite disclosures in the financial statements as toholding and dealing in specified bank notes during the period from 8th November 2016 to30th December 2016 and these are in accordance with the books of accounts maintained bythe company.

For Parikh Mehta & Associates
Chartered Accountants
Sd/-
Sachin J. Mehta
Vadodara M.No.039258
May 25 2017 FRN No.112832W

ANNEXURE I TO THE AUDITORS’ REPORT

(Referred to in paragraph (9) of our report of even date on the financial statement ofInnovative Tyres & Tubes Limited for the year ended March 31 2017)

1. (a) The company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets on the basis of available information.

(b) We have been informed that substantial portion of fixed assets have been physicallyverified by the Management during the year which in our opinion is reasonable havingregard to the size of the Company and nature of its assets. No material discrepancies werenoticed on such physical verification. The Company has not disposed off any part of fixedassets during the year.

(c) The title deeds of immovable properties are held in the name of the company.

2. As explained to us inventories have been physically verified by the management atreasonable intervals during the year. In our opinion the frequency of such verificationis reasonable. The procedures of physical verification of inventory followed by themanagement are reasonable and adequate in relation to the size of the Company and natureof its business. The Company is maintaining proper records of inventory and as explainedto us no material discrepancies were noticed on physical verification of inventory ascompared to the book records.

3. The principal amounts are repayable over varying periods up to five years while theinterest is payable annually both at the discretion of the company. In respect of thesaid loans and interest thereon there are no overdue amounts.

4. The company has not granted any loans or guarantees or security to the partiescovered under the sections 185 and 186 of the Act. According to information andexplanations given to us and to the best of our knowledge the provisions of section 185and 186 have been complied with in respect of the investment made by the Company.

5. According to the information and explanations give to us the Company has notaccepted any deposits from the public during the year. Therefore the provisions of Para(v) of paragraph 3 of the CARO 2016 are not applicable to the Company.

6. We have broadly reviewed the cost records maintained by the Company pursuant to theCompanies (Cost Records and Audit) Rules 2014 prescribed by the Central Government undersection 148 (1) (d) of the Companies Act 2013 and are of the opinion that prima faciethe prescribed accounts and cost records have been maintained. We have however not madea detailed examination of the cost records with a view to determine whether they areaccurate or complete.

7. According to information and explanations given to us and the records of the Companyexamined by us in our opinion the company is regular in depositing the undisputedstatutory dues including provident fund employees’ state insurance Income TaxSales Tax Duty of Custom Duty of Excise Service tax Professional Tax Cess and othermaterial statutory dues as applicable with the appropriate authorities.

According to information and explanations given to us no undisputed amounts payable inrespect of such statutory dues are in arrears as on March 31 2017 for a period of morethan six months from the date they became payable. According to information andexplanations given to us there are no amounts due to be transferred to the InvestorEducation and Protection Fund in accordance with the section 125 of the Act and rules madethere under has been transferred to such fund within time.

8. Based on our audit procedures and on the information and explanations given bymanagement we are of the opinion that the Company has not defaulted in repayments of duesto a financial institutions or banks. The Company has not raised money via debentures.

9. The company has not raised money by way of initial public offer or further publicoffer during the year and hence the provisions of para 3(ix) of the Order are notapplicable to the Company. In our opinion and according to the information andexplanations given to us the term loans have been applied for the purpose for which theywere raised.

10. During the course of our examination of the books and records of the Companycarried out in accordance with the generally accepted auditing practices in India andaccording to information and explanations given to us we have neither come across anyinstance of material fraud by the Company or on the Company by its officers or employeesnoticed or reported during the year nor have we been informed of any such case by themanagement.

11. The Company has paid/provided for managerial remuneration in accordance with therequisite approvals mandated by the provisions of Section 197 read with Schedule V to theAct.

12. According to information and explanations given to us the Company is not a NidhiCompany and hence provisions of para 3(xii) of the Order are not applicable to theCompany.

13. According to information and explanations given to us the related partytransactions entered into by the Company are in accordance with the provisions of sections177 and 188 of the Act.

14. According to information and explanations given to us and to the best of ourknowledge and belief the Company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures during the year under reviewand hence para 3(xiv) of the Order is not applicable to the Company. However the companyhas issued 500000 Cummulative Preference shares and 3355000 Convertible preferenceshares have been allotted.

15. According to information and explanations given to us and to the best of ourknowledge and belief the Company has not entered into any non-cash transactions with itsdirectors or persons connected to them. Accordingly the provisions of para 3(xv) of theOrder are not applicable to the Company.

16. According to information and explanations given to us the Company is not requiredto be registered under Section 45-IA of the Reserve Bank of India Act 1934.

For Parikh Mehta & Associates
Chartered Accountants
Sd/-
Sachin J. Mehta
Partner
Vadodara Membership No. 039258
May 25 2017 FRN No: 112832W

ANNEXURE TO THE INDEPENDENT AUDITOR’S REPORT OF EVEN DATE OF INNOVATIVE TYRES& TUBES LIMITED

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of InnovativeTyres & Tubes Limited ("the Company") as at 31st March 2017 inconjunction with our audit of the financial statements of the Company for year ended onthat date.

Management’s Responsibility for the Financial Statements:

The Company’s management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls Over Financial Reportingissued by the Institute of Chartered Accountants of India. These responsibilities includethe design implementation and maintenance of adequate internal financial controls thatoperate effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to the Company’s policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of the reliable financial information asrequired under the Companies Act 2013.

Auditors’ Responsibility:

Our responsibility is to express an opinion on the Company’s internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting(the "Guidance Note") and the Standards on Auditing issued by the ICAI anddeemed to be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of financial controls both issued by the Institute of CharteredAccountants of India. Those Standards and the Guidance Note require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether adequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining understanding of internal financial controls over financial reporting assessingthe risk that a material weakness exists and testing and evaluating the design andoperating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor’s judgment including the assessment of the risks ofmaterial misstatement of the financial statement whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company’s internal financial controlssystem over financial reporting.

Meaning of Internal Financial Controls Over Financial Reporting

A Company’s internal financial controls over financial reporting is a processdesigned to provide reasonable assurance regarding the reliability of financial reportingand the preparation of financial statements for external purposes in accordance withgenerally accepted accounting principles. A Company’s internal financial controlsover financial reporting includes those policies and procedures that (1) pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures of the Company are being made only in accordance with authorizations ofmanagement and directors of the Company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized acquisition use or disposition of theCompany’s assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls Over Financial Reporting

Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projection of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlsover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at 31st March 2017 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.

For Parikh Mehta & Associates
Chartered Accountants
Sd/-
Sachin J Mehta
Vadodara M.No.039258
May 25 2017 FRN No.112832W